One of the sources said the issue was a "club deal" and would be offered to a group of investors.

Credito Valtellinese had tried to boost its Tier2 capital with a subordinated debt issue back in September but had not managed to place the bond after holding a roadshow to present it to investors. ($1 = 0.9371 euros) (Reporting by Valentina Za and Giulio Piovaccari, editing by Francesca Landini)